CLAIM TO FAVOUR OF FARMERS

Southland Times, Issue 23306, 16 September 1937, Page 6

CLAIM TO FAVOUR OF FARMERS

MR THORN DEFENDS dairy prices

ALLEGATION OF “TORY RACKETEERING”

(From Our Parliamentary Reporter) WELLINGTON, September 15. The Government’s scheme of guaranteed prices for dairy exports was defended by Mr J. Thorn (Lab, Thames) in opening the Address-in-Reply debate in the House of Representatives tonight. Mr Thorn claimed that the pledge given in this matter had been scrupulously observed and that the great mass of dairy farmers was more than contented with the present procedure in the fixing of last year s price tor butter at 12 9-16 d a lb, f.o.b. - Mr Thorn said the. sum ot £SbU,UUJ was included over and above the promised 10-year average, in order to meet any rise in costs. It was estimated that the price for butter would work out at approximately 13d a lb butterfat. In addition to that a new marketing system had been introduced which had entirely eliminated speculative elements. “Among the farmers’ leaders there is a group of Tory racketeers, Mr Thorn continued. “They set up an outcry about the price being too low and costs being too high, and after that these racketeers chummed up with the compensatory pricers, although they knew that if the price was fixed at 1/4J, as these people claimed, there would have been

a deficit of at least £5,000,000 In point of fact the increase in factory costs was infinitesimal, and even after the increased costs had been paid factory pay-outs were l-3d to Id higher than the estimate.

“There is no doubt that the dairy farmers unanimously support the new marketing system, and there is also virtual unanimity in favour of the guaranteed price principle. But over the new season’s price of 13Jd a lb for butter the racketeers are again endeavouring to create the impression that it is inadequate. It is sheer insincerity to warn the taxpayers that only increased taxation can meet the deficit and at the same time insinuate that the price should be set at a level which would increase that deficit tenfold. “I am sure the racketeers do not represent the great body of common-sense farmers, many of whom have expressed themselves as entirely satisfied with the price. Their views represent an honest recommendation of everything the Government has sought to do to improve the conditions of dairy farmers.”

PAYMENT OF l/2|d PREDICTED RESULT OF GUARANTEED PRICE SCHEME (From Our Parliamentary Reporter) WELLINGTON, September 15. Marked benefits for dairy farmers under the guaranteed price scheme were claimed by Mr J. G. Barclay (Lab., Marsden) in seconding the Address-in-Reply motion in the House of Representatives tonight. Mr Barclay said that no man had done more than the Minister of Marketing (the Hon. W. Nash) to eliminate speculation from the sale of dairy exports. If the Minister had his way he would also eliminate speculation from the buying and selling of land in the Dominion. Under the guaranteed price scheme this year, Mr Barclay said, most of the factories would be able to pay out 1/2| a lb butterfat. It was admitted on all sides that the new marketing system was a huge success. For the year just closed the Danish premium had been reduced by 5/- a cwt and Mr Nash was entitled to claim credit for that. There had also been a saving of £lOO,OOO in commissions and the total of Dairy Board levies had been reduced by £41,000. The figures showed that 19 factories in Southland had paid out an average of 1/2J-, or 2d more than they had paid out in the previous year in spite of the Opposition prophecies that they would be unable-to pay out 1/-. The Leader of the Opposition (the Hon. Adam Hamilton): How about some of the small butter factories?

“I am talking about cheese factories,” Mr Barclay said. “There were very few butter factories in Southland. The increase in production is not going to stop. An improvement in transport and the zoning of the areas from which cream is collected by the dairy companies will result in an even better position.” Mr Barclay quoted figures taken from various types of dairy farm showing the net income, after all possible allowances had been made. These showed, he said, that the dairy farmer was at last in a position of security.